|ONGC acquires shares of Petro-Canada in Syria|
21 December, 2005
A 50:50 Joint Venture Company of ONGC Nile Ganga BV, the fully owned subsidiary of ONGC Videsh Ltd. (OVL) and Fulin Investments S.A.R.L., a subsidiary of China National Petroleum Company International (CNPCI) has jointly entered into an agreement with Petro-Canada, a Canadian oil company, on December 19, 2005 to acquire entire shares of Petro-Canada’s interest in four Production sharing Contracts (PSC) namely Ash Sham PSC (33.33%); Dier EZ Zor(old) PSC (37.5%);Dier EZ Annex IV PSC (37.5%); Gas Utilisation Agreement (36%), covering 36 producing fields in Syria. These fields have been producing for over last 15 years.
Petro-Canada holds its interest in these PSCs through its subsidiaries. The acquisition will be completed after approval by the Government of Syrian Arab Republic. Shell holds remaining interests in the four PSCs. A1-Furat Petroleum Company (AFPC) is the operator for the asset, whose shares are held by Shell (31.25%), SPC (50%) and Petro-Canada (18.75%). The purchase is retroactive to 1st July, 2005.
The fields under this asset are the major oil producers in Syria. These fields produced oil at an average rate of 187,350 barrels/day during H1’05. The remaining recoverable reserve potential of the asset is estimated to be more than 300 million barrels of oil.
Speaking on the occasion Shri Subir Raha, Chairman, ONGC Group of Companies stated that the joint acquisition by ONGC and CNPC is a pace setter for both the companies. ONGC and CNPC have been working together in Greater Nile Oil Project in Sudan, but it is for the first time that they have joined hands to acquire an oil asset together. This joint acquisition opens a wholly new set of opportunities for both the companies to collaborate on the Oil and Gas Value chain.
OVL is already working in Syria in another exploration block, XXIV, in partnership with IPRMEL and this acquisition would help the ONGC Group to expand its portfolio in Syria.